31 parameters which shape a healthy environment for manufacturing

The list is not necessarily exhaustive; nonetheless, to test the parameters and provide some initial prioritization, it was circulated as a simple questionnaire to one hundred knowledgeable industrialists and policy makers who were invited to add further parameters if these were felt to be important.

Thirty-six responses were received and a final list of 31 parameters compiled; these are organized in the priority order shown below.

A long-term high-level Government commitment to manufacturing.

A competitive exchange rate.

Low interest rates.

Lower corporation tax.

Capital depreciation tax relief.

Taxation of dividends.

Capital gains tax on companies (cf. property etc).

R&D tax credits.

Direct government grants.

De-regulation/ Better regulation.

Intellectual Property protection.

Skills – professional.

Skills – technical.

Energy costs.

Accommodation costs (including business rates).

Capital controls – including FDI.

Competition policy – mergers and acquisitions.

Foreign takeovers of companies.

Role of Regional Development Agencies.

Labour costs.

Flexible labour laws.

Bank for Industry.

Infrastructure – transport, communications, broadband.

Government procurement.

Tax incentives for investment.

Business start-up support.

Venture capital funding and tax incentives.

Science research base.

Academic-industrial collaboration.

Encouraging the young to consider working in industry.

Culture – recognizing and broadcasting the critical contribution of manufacturing to the future of the country.